Benjamin Graham Book Value Formula

V e p s 8 5 2 g 4 4 y.

Benjamin graham book value formula. Graham later revised his formula based on the belief that the greatest contributing factor to stock values and prices over the past decade had been interest rates. In 1974 he restated it as follows. Original benjamin graham value formula the original formula from security analysis is where v is the intrinsic value eps is the trailing 12 month eps 8 5 is the pe ratio of a stock with 0 growth and g being the growth rate for the next 7 10 years.

Original benjamin graham value formula the original formula from security analysis is where v is the intrinsic value eps is the trailing 12 month eps 8 5 is the pe ratio of a stock with 0 growth and g being the growth rate for the next 7 10 years. In 1934 benjamin graham one of warren buffett s mentors published his book entitled security analysis and that book contains one of his famous artwork in stock valuation. However this formula was later revised as graham included a required rate of return.

However this formula was later revised as graham included a required rate of return. V eps x 8 5 2g orvalue current.